Mar 31, 2021
Kerry Killinger was CEO of Washington Mutual Bank during the financial crisis. He helped build it up from a small regional player into a high-growth national entity. He'd spoken with JP Morgan-Chase's CEO Jamie Dimon about the possibility of merging the two. Then came the 2008 financial crisis and Jamie had other ideas, he wanted the bank for nothing. WAMU had been preparing for a major real estate price collapse and had cut back its real estate lending to prepare for the bad days. But that wasn't enough. They were caught short on capital and then Dimon pounced. In a flash Killinger was forced out and then WAMU was swallowed up by Dimon for next to nothing. The resulting behemoth has been extremely profitable ever since. In their book Nothing Is Too Big To Fail (Kerry and wife Linda) detail what took place behind the scenes and how it all went down, much to their amazement. It's a must read to understand what we're up against.